Revealed preference tests for consistency with weakly separable indirect utility
Författare
Summary, in English
Since Varian (Econometrica 50:945–973, 1982; Review of Economic Studies 50:90–110, 1983) made checking for consistency with revealed preference conditions more accessible to empirical researchers; researchers have often used revealed preference procedures to test their maintained hypotheses and narrow the scope of their demand studies. The tests developed by Varian are for the direct utility function, while researchers estimating demand systems often find it convenient to model consumer behavior with an indirect utility function. Unfortunately structure revealed in the direct utility function does not necessarily follow for the indirect utility function. To remedy this problem, we set forth conditions for checking consumer data for consistency with revealed preference conditions for minimization and weak separability of the indirect utility function.
Avdelning/ar
Publiceringsår
2012
Språk
Engelska
Sidor
245-256
Publikation/Tidskrift/Serie
Theory and Decision
Volym
72
Issue
2
Dokumenttyp
Artikel i tidskrift
Förlag
Springer
Ämne
- Economics
Nyckelord
- Revealed preference - Indirect utility - Weak separability
Status
Published
ISBN/ISSN/Övrigt
- ISSN: 0040-5833